SAN FRANCISCO: OpenAI has announced its biggest deal yet by buying hardware startup io, founded by famous designer Sir Jony Ive, in a $6.5 billion all-equity deal. The news was shared on May 21, 2025, and marks a major step for OpenAI as it moves beyond software and into hardware made for AI.
The agreement builds on OpenAI’s earlier investment in io, where it owned 23%. Now, it will spend $5 billion in equity to gain full control of the company. Jony Ive, who helped design the iPhone, iPad, and MacBook at Apple, is expected to lead the way in developing a new class of AI-powered devices under the OpenAI banner.
OpenAI CEO Sam Altman said on X: “Thrilled to be partnering with Jony, in my opinion the greatest designer in the world. Excited to try to create a new generation of AI-powered computers.”
This deal hints at OpenAI’s plans to design and release smart hardware—devices that are built from the ground up to work with AI. It may include new forms of laptops, desktops, or even wearable tech that responds better to human voice, motion, and emotions.
Some investors are unsure about the $6.5 billion price, since io has not yet sold any products. But supporters say the design group’s $200 million in yearly income through LoveFrom, Jony Ive’s design collective, shows it has strong value.
The use of an all-equity structure means OpenAI keeps its cash but gives shares to io’s team, showing a long-term commitment to joint success. This bold move may set the stage for how future AI companies merge design, software, and hardware to change how people interact with technology.
